Beware of the 'land fever' in the former Nghi Phong area.

In recent days, the real estate market in the former Nghi Phong and Nghi Xuan areas (now Vinh Loc ward, Nghe An province) has witnessed unusual developments as land prices have been continuously pushed up in a very short period of time.

Land prices are skyrocketing.

For over two weeks now, the road leading to Tien Dong hamlet, formerly Nghi Xuan commune, bordering Nghi Phong commune, has seen a series of newly leveled and neatly divided plots of land. Along these newly developed areas, it's easy to spot landowners and real estate agents standing around, ready to introduce and solicit buyers.

According to a real estate agent named Nguyen Thi T., the most expensive area is the road leading into the village, adjacent to the 72-meter main road. Plots of land here are currently being offered for sale at prices ranging from 39 to 41 million VND/m², while those located further inland are priced between 28 and 30 million VND/m², with a common size of approximately 8 meters frontage and 30 meters depth.

Visitors from all over flocked to the former Nghi Phong commune to view the land. Photo: PV

"Five plots near the 72-meter road have already been reserved by buyers, with only two remaining. If we don't close the deal soon, someone will reserve one this afternoon," the real estate agent asserted. According to him, just a few weeks ago, plots of land adjacent to the 72-meter road were priced at around 30-35 million VND/m², but in the past two weeks, the price has rapidly increased to 40-41 million VND/m².

Not only in the border areas, but also deep within Hamlet 5 of the former Nghi Phong commune, the practice of subdividing and "renovating" land is rampant. Along the inter-hamlet roads, many plots of land have been stripped of weathered soil, embankments built, and divided into individual lots for sale.

Mr. Tran Van Nam, a resident of Hamlet 5, former Nghi Phong Commune, said: "For the past few weeks, many people have been flocking here to see the land, with cars parked all over the road. Coffee shops are also bustling with people coming and going. Mostly, they're looking to inquire about and buy land."

According to on-site surveys, land prices in Hamlet 5 have increased sharply in a short period of time. Mr. Nguyen Van N., a long-time real estate agent in the area, said: “Previously, land in this area was only about 12 million VND/m², but it has increased to 20-22 million VND/m² in a short time. Many households have subdivided their land but are not in a hurry to sell, holding onto it and waiting for prices to rise further.”

Many people from nearby areas flocked to see the land. Photo: Van Truong

Some local residents also reported that, in addition to brokers within the province, many investors from Hanoi and other localities have recently come to "speculate," causing the previously quiet capital market to become hotter than ever. Not only Nghi Phong, but also some surrounding communes such as the former Nghi Thach and Nghi An communes are "riding the wave," with land prices starting to rise despite the fact that infrastructure and development potential have not changed much.

Plots of land are being leveled and redeveloped by residents in the former Nghi Phong commune for sale. Photo: Van Truong

Authorities and experts are warning and advising people to stay vigilant.

Speaking with reporters, Mr. Phung Ba Minh, a specialist in the Urban Economic and Infrastructure Department of Vinh Loc ward, said: The land fund in the former Nghi Phong and Nghi Xuan communes is still quite substantial, mainly consisting of long-term residential land owned by residents and land plots that were previously auctioned. This area is considered to have certain potential due to its proximity to the 72-meter road, the sea, and the open space. However, compared to areas in the former Vinh city center or Cua Lo, the infrastructure system is still limited, and the urbanization rate is not yet high.

"In 2022, the former Nghi Phong commune experienced a land price surge. Particularly in the last two weeks, land prices have increased rapidly. This excessively high price increase is unusual and poses potential risks for speculative investors," Mr. Minh asserted.

A plot of land in the former Nghi Phong commune has just been leveled. Photo: Van Truong

Amidst the land speculation frenzy in the Nghi Phong area, representatives from the Vinh Loc Ward People's Committee advise residents and investors to exercise extreme caution and vigilance, avoid following the crowd mentality, and carefully consider all factors before making investment decisions.

In particular, avoid borrowing money to speculate during a booming market. When a speculative land bubble forms, buyers are easily victims of price manipulation, purchasing land at prices far higher than its true value. When the market cools down, liquidity decreases sharply, and buyers may have to accept losses to liquidate their assets.

Cars flocked in in droves to view the land. Photo: Van Truong

Speaking to reporters, Mr. Nguyen Quoc Khanh, Chairman of the Nghe An Provincial Real Estate Association, said that if investors follow the crowd mentality when investing in real estate, it will entail many risks.

According to Mr. Khanh, public awareness campaigns and recommendations need to be intensified. At the same time, authorities at all levels should promptly and transparently disclose planning information so that people can accurately understand it, avoiding exploitation and negative consequences for the real estate market and socio-economic life.

A plot of land belonging to a household in the former Nghi Phong commune remains unsold, awaiting further price increases. Photo: Van Truong

Authorities also need to tighten management of the real estate market, strengthening inspection and supervision of land buying, selling, and transfer activities in the area. Speculative activities and market disruptions must be detected and strictly dealt with according to the law, thereby contributing to restoring order, stabilizing the market, and ensuring the sustainable socio-economic development of the locality.

Assessing the potential of an area should not be based solely on "trends." Investors should not be manipulated psychologically, and absolutely should not have a "fear of missing out" mentality and rush into investing without properly assessing the actual development potential of the area. Instead, they should base their assessment on fundamental factors such as transportation infrastructure, social amenities, the ability to attract residents, and long-term economic development prospects.

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Source: https://baonghean.vn/can-trong-voi-con-sot-dat-vung-nghi-phong-cu-10315929.html